Impact of Covid-19 and UK Government's Recovery Plan on TUI Group's Business Environment

This report analyzes the impact of Covid-19 and UK Government's Recovery Plan on TUI Group's business environment. It covers TUI Group's internal and micro-environment, STEEPLE factors affecting its operations, and concludes with the advantages of new strategies and techniques.

Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
Section 1...........................................................................................................................................3
Brief overview of TUI Group.....................................................................................................3
Section 2...........................................................................................................................................4
The impacts of the Covid-19 Pandemic on TUI Group’s internal environment.........................4
The impacts of the UK government’s recovery plan on TUI Group’s internal environment.....5
Section 3...........................................................................................................................................5
The impacts of the Covid-19 Pandemic on TUI Group’s micro-environment...........................5
The impacts of the UK government’s recovery plan on TUI Group’s micro-environment........6
Section 4...........................................................................................................................................6
Impact of of STEEPLE factors on TUI Group’s operations.......................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Dynamics of the business environment has the crucial influence on the working of the
business. In addition to this in current dynamic market area organization as to rapidly opto
several new alteration in the atmosphere in order to cope up with the ever changing technology
as well as trends. The following report is based on the organization TUI group As well as it is
regarding the study of business environment dynamics which has the major influence on the
respective organization. Moreover to this the following report will cover about the internal
environment of the business which involves existing workers, management as well as Major
League culture of the organization that is having the major influence on the behaviour of the
worker as well (Raharjo, and et.al., 2022). Furthermore few of the components which affects the
entire working as well as culture of the organization in which micro and macro environment
refers to the few of the uncontrollable and crucial elements that affects the process of decision
making as well as strategy planning of the organization.
Section 1
Brief overview of TUI Group
Respective organization is known to be the multinational business firm that specialises in
providing the services of tourism and hospitality which are cruise, air flights, tour packages and
various more. In addition to this the respective organization is possessing almost around 400
hotels that are basically situated in several major travel destination around the world in which the
organization is also having more than 140 airplanes and various more (Nguyen, Christopher, and
Nguyen, 2022). Furthermore the respective organization is founded in the year 1923 and it was
founded in Berlin Germany. Later in the year 1959 the organization listed themselves on the
Stock Exchange.
Last years revenue and net profits
2018 and 2019 is the year in which the organization received the income of around 18 billion
pounds in which they are having the net profit of 5.3 billion pounds in that specific financial
year. Later in 2019 and 2020 year management of the respective organization has earned almost
the sales revenue of 7.94 billion ponds because of the pandemic COVID-19 they have suffered
the loss of around 3 billion pound. In addition to it the organization functions in the aviation as

well as hospitality industries in which they are having more than 50,000 workers in the
organization. The company is having their competitors in the market area which are holiday
break, Thomas Cook India, dart group, see link travel group and various more
Number of employees in company are 50,584 .
Organisational structure
The structure of the organization is the manner in which various of the practices of the
organization are functioning in such a way in accordance to complete the long term objectives as
well as goals of the organization. In addition to this these practices can involves liabilities, rolls
as well as guidance. Moreover to this it also represents the manner of flow of interaction among
the workers that are functioning in the organization at a very different level. For instance in
accordance to the respective organization management follows the structure which is centralised
and in this type of the structure information basically flows from the top level management to the
lower level management (Leszkiewicz, Hormann, and Krafft, 2022).
 The commercial business has the very clear the guidance and direction.
 Functioning as well as interaction can be convenient through regular observation as
management have the rigid chain by interaction flows.
And at the similar time period there is also few of the limitations of this type of the structure
which are described below.
 This can be the reason of low motivation of the workers.
 Because of the low motivation it can lead to the low performance as well as productive
level of the employees.
Section 2
The impacts of the Covid-19 Pandemic on TUI Group’s internal environment.
In the year 2020 month January respective organizations management of this crisis
basically focused in observing the declining in my economy because of the pandemic COVID-
19. The initial call Have been addressed and evaluated by the respective organization on the
22nd of January 2020 later after regularly observing the pandemic the organization created the
crisis management on 24th February in the year 2020. Group shs is linked to the management of
crisis around the business areas. In addition to this they conducted over more than 70 meetings in

which they focused in making several different plan of actions in order to manage the pandemic
effectively and efficiently (Kerdpitak, and et.al., 2022).
. After the outbreak of the virus COVID 19 the respective group has formed the several groups
and spread them around the globe through coordinating as well as occupational ways in which
they are responsible for taking hygiene measures and several other protocols which are imposed
by the government which are, social distancing, using mask and sanitizers for every worker of
the respective organization. Moreover to this management of the respective organization need to
conduct as working practices in accordance to the imposed policies of the nation regarding the
pandemic COVID-19 and also they need to make sure that these rules are executed and
implemented in the workplace of the company.
The impacts of the UK government’s recovery plan on TUI Group’s internal environment.
Reconstructing the industry of tourism is the main priority of the several different
organization but currently the industry has become more sustainable and resilient in the
upcoming period of time. In addition to this because of the pandemic COVID-19 it has effected
the industry of tourism majorly in comparison to other different sectors. So in order to overcome
this management of the respective organization make saree cover plan on their internal
environment but there is still several major problems to encounter and because of search imposed
rules organizations can we functioning effectively as well as efficiently because of these
effective policies that are imposed by the government (Chungyas, and Trinidad, 2022).
Section 3
Micro-environment.
The impacts of the Covid-19 Pandemic on TUI Group’s micro-environment.
The respective organization is specialises in tours and travel which is based on Germany
and the organization encountered the major influence from the lockdown in the several different
nations which leads to suspension of the flights and consumers are afraid of going out because of
the outbreak. Management of the respective organization have now been focused in providing
their consumers with 20% rewards if they don’t ask for rebooking there holidays and refunds as
well. This has also been announced by the management that the reservation in the holiday or
time are declined by 60% if it is compared to the previous year. Respective organization have

also encountered several different negative impacts on its economy because of cancelled
bookings and refunds.
The impacts of the UK government’s recovery plan on TUI Group’s micro-environment
Recovery plan of the tourism sector provide assistance in suitable development of the
specific industry after the Covid 19 outbreak. In addition to this people currently have the
possibility in order to claim several different reward vouchers so that they can conveniently use
that vouchers in any type of the tourist destination in the entire United Kingdom. Moreover to
this pass offer rail is currently the new offer which are offered by their respective legal
authorities of the United Kingdom to their citizens in order to make them travel around the
nation with more sustainability as well as convenience (Azimovna, 2022). Moreover to this
currently government of the United Kingdom will also concentrate on adaptation of latest
technology as well as data which is going to make a bigger hub in which the management or the
government will focus on monitoring all the information as well as data which is linked to the
industry of tourism and because of this it will be helpful to track all the trends of the consumers
regarding their travel and tourism.
Section 4
Impact of of STEEPLE factors on TUI Group’s operations
 Social factor -
This element assist in evaluating the alteration in the lifestyle of the consumers and
modification and their requirements as well as preferences. Respective organization need to
conduct in Depth research in order to understand the market trend.
 Technological factor-
Due to the modification the practices and implementation of the technology this has
influenced the organization optimistically as well as negatively and currently consumers are now
moving towards buy products from the online portals instead of going to the outlets and because
of this respective organization need to close over several of their outlets as well as removing
various members of their staff because of the pandemic and lock down in several different areas.
 Economical factors -
Because of the current situation of the pandemic it has force the respective organization
in order to close its more than 100 outlets and because of this the income and sales revenue of

the organization has declined drastically as well as there are several employees are on the risk of
unemployment as well. (Alexieva-Nikolova, and Valeva, 2022)
 Environment factor -
Due to the announcement in the tourism sector it has also assisted in increasing the
carbon emission as well as pollution which is not beneficial for the goodwill of the organization
as well. So in order to overcome this management of the respective form is providing assistance
to the environment in several ways such as they are using solar panels instead of natural
resources, they are generating energy with the assistance of biomass power plant and various
another elements.
 Political factor-
This element is the very crucial part in examining the long term profitability as well as
revenue making of the respective organization in the specific market area of the organization.
Management of the respective organization focus on dealing in the industry of tour and travel in
several different nation and they need to follow the different rules as well as policies of the
different nations in order to smoothly function their operations.
 Legal factor -
In few of the nations the the legal condition are not effective enough in order to save the
intellectual property right of any commercial business but management of respective
organization is suitably sustained and protected due to their strong legal experience and power.
 Ethical factor -
Management of the respective organization is evaluated as well as majorly determined in order to
function in their ethics as they are focusing in providing and managing several of the jobs of
their workers as they required to remove various people from their outlets so in order to
overcome that they focus on relocating as many workers as they can in order to provide them
jobs. (Ahmad, and Khan, 2022)
CONCLUSION
From the above report it has been concluded that there can be several of the advantages from the
new strategies as well as techniques which can be imposed by the government of United
Kingdom as they all function for the betterment in the industry of that yours as well as travel and
provide assistance to the respective organization as well. In addition to this as because of the new
rules as well as policies of the legal authorities in the nation consumers can now start to travel

from one place to another as it can be beneficial for the respective organization in order to
recover from their losses because of the pandemic and it can be beneficial for their long term
sustainability in the market area.

REFERENCES
Books and Journals
Ahmad, Y. and Khan, M.R., 2022. How business strategy drives human resource practices in
small and medium enterprises? Evidence from Pakistani autoparts
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SAMARKAND REGION AND THE ROLE OF SMALL BUSINESS IN IT. Science
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Chungyas, J.I. and Trinidad, F.L., 2022. Strategic management practices and business
performance of cooperatives in Ifugao, Philippines: basis for strategic planning
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Kerdpitak, C., and et.al., 2022. Development of Historical and Cultural Tourism Areas for the
Competitive Business of U-don Thani Province. International Journal of Health
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